Forbes Energy Services Ltd. (FES): Warren Lichtenstein Begins Trimming Position

Warren Lichtenstein‘s Steel Partners has filed a 13D on Forbes Energy Services Ltd. (NASDAQ:FES). The filing shows that Mr. Lichtenstein’s firm now owns 3.27 million shares of the company, down from 3.55 million shares owned in early February and 3.65 million shares owned at the end of 2015. Forbes Energy was one of Steel Partners’ smallest holdings at the end of 2015, accounting for just 0.20% of its highly concentrated public equity portfolio.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
STEEL EXCEL INC 3,271,518 3,271,518 3,271,518 14.7%
STEEL PARTNERS HOLDINGS 3,271,518 3,271,518 3,271,518 14.7%
SPH GROUP 3,271,518 3,271,518 3,271,518 14.7%
SPH GROUP HOLDINGS 3,271,518 3,271,518 3,271,518 14.7%
STEEL PARTNERS HOLDINGS GP INC 3,271,518 3,271,518 3,271,518 14.7%

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Page 1 of 10 SEC Filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

(Rule 13d-101)

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

 

(Amendment No. 5)1

 

Forbes Energy Services Ltd.

(Name of Issuer)

 

Common Stock, par value $0.04

(Title of Class of Securities)

 

345143101
(CUSIP Number)

 

Warren G. Lichtenstein

Steel Partners Holdings L.P.

590 Madison Avenue, 32nd Floor

New York, New York 10022

(212) 520-2300

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

March 4, 2016

(Date of Event Which Requires Filing of This Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box .

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

_______________

1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

               The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

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Page 2 of 10 SEC Filing

 

1

NAME OF REPORTING PERSONS

 

STEEL EXCEL INC.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a) ☐

(b) ☐

3

SEC USE ONLY

4

SOURCE OF FUNDS

WC

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)                          ☐

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

– 0 –

8

SHARED VOTING POWER

3,271,518

9

SOLE DISPOSITIVE POWER

– 0 –

10

SHARED DISPOSITIVE POWER

3,271,518

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,271,518

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES                                                      ☐

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

14.7%

14

TYPE OF REPORTING PERSON

 

CO

 

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Page 3 of 10 SEC Filing

  

1

NAME OF REPORTING PERSONS

 

STEEL PARTNERS HOLDINGS L.P.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a) ☐

(b) ☐

3

SEC USE ONLY

4

SOURCE OF FUNDS

AF

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)                          ☐

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

– 0 –

8

SHARED VOTING POWER

 

3,271,518

9

SOLE DISPOSITIVE POWER

 

– 0 –

10

SHARED DISPOSITIVE POWER

 

3,271,518

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,271,518

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES                                                      ☐

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

14.7%

14

TYPE OF REPORTING PERSON

 

PN

 

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Page 4 of 10 SEC Filing

 

1

NAME OF REPORTING PERSONS

 

SPH GROUP LLC

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a) ☐

(b) ☐

3

SEC USE ONLY

4

SOURCE OF FUNDS

AF

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)                          ☐

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

– 0 –

8

SHARED VOTING POWER

 

3,271,518

9

SOLE DISPOSITIVE POWER

 

– 0 –

10

SHARED DISPOSITIVE POWER

 

3,271,518

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,271,518

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES                                                      ☐

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

14.7%

14

TYPE OF REPORTING PERSON

 

OO

 

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Page 5 of 10 SEC Filing

 

1

NAME OF REPORTING PERSONS

 

SPH GROUP HOLDINGS LLC

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a) ☐

(b) ☐

3

SEC USE ONLY

4

SOURCE OF FUNDS

AF

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)                          ☐

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

– 0 –

8

SHARED VOTING POWER

 

3,271,518

9

SOLE DISPOSITIVE POWER

 

– 0 –

10

SHARED DISPOSITIVE POWER

 

3,271,518

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,271,518

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES                                                      ☐

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

14.7%

14

TYPE OF REPORTING PERSON

 

OO

 

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Page 6 of 10 SEC Filing

 

1

NAME OF REPORTING PERSONS

 

STEEL PARTNERS HOLDINGS GP INC.

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

(a) ☐

(b) ☐

3

SEC USE ONLY

4

SOURCE OF FUNDS

AF

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)                          ☐

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

DELAWARE

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

– 0 –

8

SHARED VOTING POWER

 

3,271,518

9

SOLE DISPOSITIVE POWER

 

– 0 –

10

SHARED DISPOSITIVE POWER

 

3,271,518

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,271,518

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES                                                      ☐

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

14.7%

14

TYPE OF REPORTING PERSON

 

CO

 

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Page 7 of 10 SEC Filing

 

The following constitutes Amendment No. 6 to the Schedule 13D filed by the undersigned (“Amendment No. 6”). This Amendment No. 6 amends the Schedule 13D as specifically set forth herein.

 

Item 3.  Source and Amount of Funds or Other Consideration.

 

Item 3 is hereby amended and restated to read as follows:          

 

The aggregate purchase price of the 3,271,518 Shares owned directly by Steel Excel is approximately $11,557,800, including brokerage commissions. The Shares owned directly by Steel Excel were acquired with the working capital of Steel Excel.

 

Set forth on Schedule A annexed hereto (“Schedule A”) is the aggregate purchase price of the Shares beneficially owned, if any, by each of the persons, who are not Reporting Persons, listed on Schedule A to Amendment No. 1, filed with the Securities and Exchange Commission on May 28, 2013 (“Amendment No. 1 Schedule A”).

 

Item 5. Interest in Securities of the Issuer.

 

Item 5(a)-(c) is hereby amended and restated to read as follows:          

 

(a)     The aggregate percentage of Shares reported owned by each person named herein is based upon 22,210,355 Shares outstanding, which is the total number of Shares outstanding as of November 9, 2015, as reported in the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 13, 2015.

 

As of the close of business on March 4, 2016, Steel Excel owned directly 3,271,518 Shares, constituting approximately 14.7% of the Shares outstanding. By virtue of their relationships with Steel Excel discussed in further detail in Item 2, each of SPHG Holdings, Steel Holdings, SPHG and Steel Holdings GP may be deemed to beneficially own the Shares owned directly by Steel Excel.

 

Set forth on Schedule A is the aggregate number and percentage of Shares beneficially owned, if any, by each of the persons, who are not Reporting Persons, listed on Amendment No. 1 Schedule A. Unless otherwise indicated thereon, each of the persons listed on Schedule A has (i) the sole power to vote and dispose of the Shares they beneficially own, if any, and (ii) the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Shares that they beneficially own, if any.

 

(b)     Each of Steel Excel, SPHG Holdings, SPHG, Steel Holdings and Steel Holdings GP is deemed to have shared power to vote and dispose of the Shares owned directly by Steel Excel.

 

(c)     Schedule B annexed hereto (“Schedule B”) lists all transactions in the Shares of the Issuer by the Reporting Persons since the filing of Amendment No. 5.  All of such transactions were effected in the open market.

 

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Page 8 of 10 SEC Filing

 

SIGNATURES

 

After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated:   March 8, 2016

STEEL EXCEL INC.

By:

/s/ James F. McCabe, Jr.

James F. McCabe, Jr., Chief Financial Officer

STEEL PARTNERS HOLDINGS L.P.

By:

Steel Partners Holdings GP Inc.

General Partner

By:

/s/ Jack L. Howard

Jack L. Howard, President

SPH GROUP LLC

By: Steel Partners Holdings GP Inc.
Managing Member

By:

/s/ Jack L. Howard

Jack L. Howard, President

SPH GROUP HOLDINGS LLC

By: Steel Partners Holdings GP Inc.
Manager

By:

/s/ Jack L. Howard

Jack L. Howard, President

STEEL PARTNERS HOLDINGS GP INC.

By:

/s/ Jack L. Howard

Jack L. Howard, President

 

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Page 9 of 10 SEC Filing

 

SCHEDULE A

 

Interest in Securities of the Issuer by the Persons, Who Are Not Reporting Persons, Listed on Amendment No. 1 Schedule A

 

Name

Number of Shares Beneficially Owned

Percentage

Aggregate Cost

Jack L. Howard

5,000*

Less than 1%

$28,529.50


 * Owned directly by Mr. Howard’s IRA Account.

 

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Page 10 of 10 SEC Filing

 

SCHEDULE B

 

Transactions in the Shares Since the Filing of Amendment No. 5 to the Schedule 13D

 

Class of
Security

Securities
Sold

Price ($)

Date of
Sale

STEEL EXCEL INC.

Common Stock

10,481

0.3001

2/17/2016

Common Stock

343

0.3058

2/18/2016

Common Stock

400

0.3000

2/19/2016

Common Stock

100

0.3000

2/22/2016

Common Stock

200

0.3100

2/23/2016

Common Stock

300

0.3000

2/26/2016

Common Stock

102

0.3000

2/29/2016

Common Stock

43,065

0.3216

3/1/2016

Common Stock

7,600

0.3100

3/2/2016

Common Stock

66,160

0.3200

3/3/2016

Common Stock

150,000

0.3400

3/4/2016

 

 

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